Question
In: Economics
If a perfectly competitive market moved toward monopolistic competition, we might expect less advertising. a smaller...
If a perfectly competitive market moved toward monopolistic competition, we might expect
-
less advertising.
-
a smaller range of product differentiation, but a lower price.
-
a greater range of product innovation and a lower price.
-
a greater range of product differentiation, but a higher price.
Solutions
Expert Solution
A greater range of product differentiation, but a higher price.
Perfect competition refers to a market situation where the products are homogeneous or identical because of which the price of the product is fixed by the market or the firm has no influence over the price and cannot charge higher prices.
Monopolistic competition refers to a market situation where firms sell differentiated products because of which they can influence the market price and can charge higher price.
So when perfect market competition move towards monopolistic competition we might expect a greater range of product differentiation, but a higher price.
Rahul Sunny answered 2 years agoRelated Solutions
1)List the two main characteristics of each industry structure: perfectly competitive market, monopolistic competition, monopoly competition?...
1)List the two main characteristics of each industry structure:
perfectly competitive market, monopolistic competition, monopoly
competition? 2.For each of these market structures above state if
there exist barriers to new firm entry.
Discuss the similarities and differences of a monopolistic competitive market place relative to a perfectly competitive...
Discuss the similarities and differences of a monopolistic
competitive market place relative to a perfectly competitive one
and to a monopoly. Give a realistic example of a market with
differentiated products, and how these consumers respond to changes
in this market.
Monopolistic competitive markets are said to be less economically efficient than perfectly competitive markets. Explain why...
Monopolistic competitive markets are said to be less
economically efficient than perfectly competitive markets. Explain
why this is true. Diagram the equivalent long-run equilibrium
points for each to demonstrate your answer.
Both monopolistic competition and perfectly competition are market structures where firms earn normal profits in the...
Both monopolistic competition and perfectly
competition are market structures where firms earn normal profits
in the long run, but with a difference.
a. Using a single diagram, show the equilibrium
price,output and average costs for both markets in the long
run.
b. Which is the common feature of both markets that makes the
sellers earn only normal profits in the long run?
How does advertising impact monopolistic competition?
How does advertising impact monopolistic competition?
explain monopolistic competition. It is suggested that one way to get into a monopolistically competitive market...
explain monopolistic competition. It is suggested that one way
to get into a monopolistically competitive market is to get a
franchise for a nationally advertised product. Provide an example
of a franchise and indicate how this is a monopolistically
competitive situation based on your definition.
If perfectly competitive firms are price takers, and monopolistic, monopolistic competitive, and oligopolistic firms are price...
If perfectly competitive firms are price takers, and
monopolistic, monopolistic competitive, and oligopolistic firms are
price searchers, then it follows that three times as many firms in
the real world are price searchers than are price takers. Do you
agree or disagree? Explain your answer. (400 - 500 words)
Thank you in advance for not copying other's answers.
If perfectly competitive firms are price takers, and monopolistic, monopolistic competitive, and oligopolistic firms are price...
If perfectly competitive firms are price takers, and
monopolistic, monopolistic competitive, and oligopolistic firms are
price searchers, then it follows that three times as many firms in
the real world are price searchers than are price takers. Do you
agree or disagree? Explain your answer. (Answer: 400-500 words)
Q3. If perfectly competitive firms are price takers, and monopolistic, monopolistic competitive, and oligopolistic firms are...
Q3. If perfectly competitive firms are price takers, and
monopolistic, monopolistic competitive, and oligopolistic firms are
price searchers, then it follows that three times as many firms in
the real world are price searchers than are price takers. Do you
agree or disagree? Explain your answer.
notes:
1- I need new answer please ..
2- a word count of 400-500 words
Q3. If perfectly competitive firms are price takers, and monopolistic, monopolistic competitive, and oligopolistic firms are...
Q3. If perfectly competitive firms are price takers, and
monopolistic, monopolistic competitive, and oligopolistic firms are
price searchers, then it follows that three times as many firms in
the real world are price searchers than are price takers. Do you
agree or disagree? Explain your answer.
notes:
1- I need new answer please ..
2- a word count of 400-500 words
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